FinTech: Indian Agtech Arya.ag Launches BNPL For Agri-Produce Buyers
Arya.ag intends to iron out the wrinkles in commodity financing.
Arya.ag is an Indian agtech that provides post-harvest services across the agricultural value chain, including warehousing, warehouse receipt financing, rural storage discovery, collateral management and market linkages. The firm has launched a BNPL service for its commodity buyers. (The Economic Times)
Arga.ag has taken a bold step to introduce an unsecured financing mode for agricultural commodities such as grains, oilseeds, and pulses.
How it works
Its BNPL facility is available to agri buyers who purchase about 150-200 tonnes of the agri produce on the Arya.ag platform.
The process is simple. The buyer has to upload their Know-Your-Client (KYC) documentation and financial particulars. Once their application is accepted, they can avail the BNPL facility.
For the purpose, Arya has tied up with a number of financiers to extend the BNPL funds on its platform. In Arya’s BNPL system the lender pays upfront on behalf of the buyer to the lender, and earns the cash discount. The agri-buyer later repays the lender.
BNPL’s entry into B2B agri-commodities
Speaking on the launch of BNPL, Prasanna Rao, CEO Arya.ag said, “There is always a need for simple and innovative financial solutions in every sector. BNPL, which is mostly available in the retail space will now be made available for people in the B2B trade of agri commodities. Through the BNPL service, Arya.ag will bring in more ease and trust in commerce and the market linkage transactions. It will mitigate payment risk for the supplier and add assurances for the buyer which will benefit farmers, FPOs, and small agri businesses selling on the platform.”
In course of time, Arya could extend BNPL beyond just produce to warehouse rents, loan repayments and more.
Related Story: Indian Agtech Agnext Lands $21M Series ‘A’
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